FLEXIBILITY FOR MARKETS AND GRIDS
Economic and Technical Evaluation of the hybrid-VPP Concept
- T. Esterl, AIT Austrian Institute of Technology
- C. Gutschi, cyberGRID
IAEE 2017, Vienna, 5. September 2016
FLEXIBILITY FOR MARKETS AND GRIDS Economic and Technical Evaluation - - PowerPoint PPT Presentation
FLEXIBILITY FOR MARKETS AND GRIDS Economic and Technical Evaluation of the hybrid-VPP Concept T. Esterl, AIT Austrian Institute of Technology C. Gutschi, cyberGRID IAEE 2017, Vienna, 5. September 2016 HYBRID-VPP CONCEPT Distribution grid Market
IAEE 2017, Vienna, 5. September 2016
Flexibility Distribution grid Market
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1. Project overview 2. Use case description 3. Use case Market & Customer 4. Use Case Market & DSO support 5. Analysis of regulatory framework 6. Conclusions of hybrid-VPP concept 7. Outlook: InteGrid project
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Hybrid operation of a VPP
significant restrictions Simulation and Proof-of-concept of hybrid-VPP concept
flexible loads, different topologies, etc.) Consortium AIT (Lead, research), cyberGRID (IT, market analysis), Energienetze Steiermark (DSO), Energie Steiermark (Trader), Elektro Ljubljana (DSO), Elektro Energia (Trader), Grazer Energieagentur (Consulting), TU Wien (research), Energetic Solutions (Consulting) Duration: 04/2014 – 06/2017
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HV connection to neighboring HV grid Transformer to transmission grid Noncritical: VPP operation P↕ permitted Semi-critical:
Critical: P↓ required by DSO Semi-critical:
Critical: P↑ required by DSO Highly critical: VPP operation prohibited
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MV grid HV grid
Market
Customer
quality regulation scheme
Grid (DSO)
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Participation of VPP on the Tertiary Balancing Market and Minimization of grid connection costs for new generators in parallel
New customer (wind park) applies for connection to the grid at an under-dimensioned connection point. Classic approach: Customer needs to invest into a new line to the closest feasible connection point
Hybrid-VPP approach:
critical hours Cost savings due to lower grid connection costs Additional benefits of participation in the balancing market
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Business Case of VPP:
depending on capacity of customers and on availability of 24/7 control room
difficult to predict (high volatility) Positive Business Cases feasible in tertiary balancing market (AT, SI; 2015)
Business Case of hybrid-VPP:
supporting flexibility
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100 000 200 000 300 000 400 000 500 000 600 000 2 4 6 8 10 12 14 16 18 20
VPP revenues & costs, cumm. 1a [EUR] Capacity of controlled customers [MW]
Total net revenues, 40% shared with customer Total net revenues, 50% shared with customer Total net revenues, 60% shared with customer VPP costs (CAPEX+OPEX), 0,2 MW/customer VPP costs (CAPEX+OPEX), 1 MW/customer VPP costs (CAPEX+OPEX), 5 MW/customer
Economic evaluation from customers’ perspective:
consumption on demand of the DSO during critical hours. Use case is strongly dependent
(or consumption).
curtailment of maximum 300 h/a.
for new generators.
the costs of shifted load should not exceed 42 €/MWh to be economically feasible (also highly dependent on grid typology, etc.).
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€ 0 € 500 000 € 1 000 000 € 1 500 000 € 2 000 000 € 2 500 000
Avoided investment Reduced revenues from feed-in (NPV) VPP service fee (NPV) Net savings
Wind park A Wind park B Wind park C
hybrid-VPP Over voltage issues in winter due to market participation of VPP Under voltage issue in summer due to delayed grid investments All voltage issues could be solved by applying the traffic light system
min voltage in the grid max voltage in the grid
Optimization of DSO’s grid investments & Participation in Tertiary Balancing Market
Issues caused by ancillary service provision being avoided
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Supporting of DSO during maintenance and special switching states + Participation in Tertiary Balancing Market
hybrid-VPP hybrid-VPP supports the DSO by reducing voltage problems during special switching states and thus preventing tripping of customers. During non-critical hours, all units of the hybrid-VPP can participate in the balancing market.
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General connection requirement
but no legal claim
Highly reliable network infrastructure in Austria, Short-term benefits of hybrid-VPP for deferral of grid investments
Quality regulation scheme would create incentives for hybrid-VPP
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Market Customer Grid (DSO)
Yes Does the DSO have sufficient information about flexibilities? The DSO has to tender the required flexibility. Does the DSO procure the needed flexibility on the market? Model Aggregator Model Single Market (?) The DSO operates the control infrastructure. Can the flexibility operator choose its marketer? Model Flexibility Model DSO (?) The DSO outsourced the network operation Model Service Provider (?) Does the DSO operate the grid
Yes No No Yes No Yes No
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management as well as different types of (renewable) generators (Applicability of hybrid-VPP depends on grid topology and connection points, capacity and type of available flexibilities)
VPP platform (as for example reduction of investment costs for new users who connect to the grid as well as prevention/deferral of grid investments of DSOs)
flexibility operation and for the definition of the connection point
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This work was funded by the Austrian Research Funding Association (FFG) under the scope of the e!mission program.
Overview of the InteGrid project
will be further developed in the InteGrid project.
different stakeholders to actively participate in the energy market, by testing and validating solutions in an integrated environment. Among these tools, the Traffic Light System will be refined in order to comply with multiple markets designs and to reach a higher Technological Readiness Level.
be integrated to realize the Traffic Light System as a tool for DSOs.
with DSOs and tested by the DSOs Elektro Ljubljana (SI) and EDP Distribuição (PT) in the scope of Pilots of technical and commercial VPPs. This means a further development of the hybrid-VPP coordination scheme “Flexibility”.
Project Homepage: www.integrid-h2020.eu
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IAEE 2017, Vienna, 5. September 2016